These incentives are in the form of Czech corporate income tax credits related to eligible project assets to be acquired by the company’s subsidiary, Mangan Chvaletice s.r.o.
Based on eligible assets of about CZK 2.4 billion (CAD$137 million), such tax credits would amount to about CZK 470.3 million (about CAD$27 million).
These tax credits would be over and above the normal tax depreciation on such eligible assets and would be applied toward Czech corporate income taxes otherwise payable by Mangan on earnings generated by the project.
Euro Manganese president and CEO Marco Romero said: “We are grateful and very encouraged by this valuable support offered to us by the Czech Government.
“Despite the turbulent times that the world is currently experiencing, our team is resolute and continues to make excellent progress on all key fronts with our important Chvaletice Manganese Project.
“We expect to become Europe’s only primary producer of high-purity manganese products, just when these sustainably-produced battery raw materials will be most needed by the rapidly emerging European electric vehicle industry.”
The Chvaletice Manganese Project is a significant manganese deposit hosted in historical mine tailings.
The project is in an industrialised valley with rail, gas, water and power available on the project site.
Euro Manganese’s goal is to be the preferred European supplier of ultrahigh-purity manganese products for the lithium-ion battery industry with secondary markets that include producers of specialty steel, high-technology chemicals and aluminium alloys.
Feasibility study test work supports key PEA results
The project’s feasibility study test work has been underway since October 2019 at the laboratory facilities of lead process plant engineers, BGRIMM Technology Group.
Test work is progressing well, with both magnetic separation and deep purification confirmation tests now substantially complete.
Magnetic separation test results verified those previously reported in the Preliminary Economic Assessment (PEA) with results of about 85% tMn (total manganese) recovery and a 15% tMn concentrate grade, supporting the viability of this important step in the proposed process flow sheet.
Simpler cost-effective processing
Deep purification tests have also verified previous test findings, with the successful removal of target product impurities.
These tests have the ultimate objective of supporting and optimizing the project’s capability to deliver ultra-high purity electrolytic manganese metal and manganese sulphate monohydrate.